EBM Direct Digital Manufacturing & Prototyping System to Be Installed at NCSU

University Will Use Arcam System from Stratasys to Perform
Advanced Research and Material Qualification for Aerospace and Medical Applications

MINNEAPOLIS--(BUSINESS WIRE)--July 9, 2007--(NASDAQ:SSYS)
Stratasys today announced North Carolina State University has chosen
its Arcam A2 Electron Beam Melting (EBM) system to perform advanced
research and material qualification in the aerospace, biomedical and
high-tech industries. This is the university's second EBM purchase.

Stratasys is the exclusive North American distributor for Arcam
EBM systems, which manufacture parts or prototypes from metal.

Using the EBM system, NCSU will primarily conduct research related
to qualifying new superalloys for applications where high strength or
resistance to high temperature is required. For example, the A2 will
allow the university to further its work with NASA to qualify new
materials for aerospace applications using metals such as aluminum,
titanium, nickel and high temperature copper.

In the biomedical field, the university will use the A2 to
research new metals that can be used in bone implants, allowing
medical device manufacturers to optimize a part's flexural stiffness
and fatigue life.

"Due to the A2's larger build envelop options, we can make parts
that are twice as large as we can make with our other EBM system. This
opens up a lot of opportunities for our research," said Dr. Denis
Cormier, Associate Professor in the Edward P. Fitts Department of
Industrial and Systems Engineering at North Carolina State University.
"With the Arcam A2, we will be able to evaluate the EBM process as an
alternative to forging and casting, and we will help qualify new
materials for commercial and government applications. We look forward
to using the new system to push the boundaries of our advanced
research."

NCSU's system is slated for mid-July installation.

Materials offered for Arcam EBM systems include F-75 Cobalt
Chrome; Ti6AI4V Titanium, the most widely used titanium alloy; and
Ti6AI4V ELI Titanium, which features improved ductility and fracture
resistance at low temperatures.

Stratasys Inc., Minneapolis, makes prototyping and direct digital
manufacturing systems and it offers prototype and part manufacturing
services. According to Wohlers Report 2007, Stratasys supplied 41
percent of all systems installed worldwide in 2006, making it the unit
market leader, for the fifth consecutive year. Stratasys owns the
rapid prototyping process known as fused deposition modeling (FDM).
The process creates functional prototypes and end-use parts directly
from any 3D CAD program using ABS plastic, polycarbonate, PPSF, and
blends. The company holds over 180 granted or pending rapid
prototyping patents globally. Stratasys products are used in the
aerospace, defense, automotive, medical, education, electronic, and
consumer product industries. On the Web: www.Stratasys.com.

Arcam and CAD-to-Metal are registered trademarks of Arcam AB,
Gothenburg, Sweden. Stratasys and FDM are registered trademarks of
Stratasys, Inc.